February Market Update

In its continued effort to curb inflation, the Federal Reserve raised its benchmark interest rate in February by a quarter-percentage point to 4.50% - 4.75%, its 8th rate hike since March of last year, when the interest rate was nearly zero. Mortgage interest rates have dipped slightly from their peak last fall, leading pending sales to increase 8.1% month-to-month as of last measure, but affordability constraints continue to limit homebuyer activity overall, with existing-home sales declining for the twelfth consecutive month, according to the National Association of Realtors® (NAR). New Listings increased 44.8 percent for New Construction but decreased 23.5 percent for Existing Homes. Pending Sales decreased 11.8 percent for New Construction and 26.6 percent for Existing Homes. Inventory increased 115.1 percent for New Construction and 27.2 percent for Existing Homes. Median Closed Price increased 8.7 percent for New Construction and 8.7 percent for Existing Homes. Days on Market increased 121.9 percent for New Construction and 81.8 percent for Existing Homes. Months Supply of Inventory increased 151.6 percent for New Construction and 66.7 percent for Existing Homes. With buyer demand down from peak levels, home price growth has continued to slow nationwide, although prices remain up from a year ago. Sellers have been increasingly cutting prices and offering sales incentives in an attempt to attract buyers, who have continued to struggle with affordability challenges this winter. The slight decline in mortgage rates earlier this year convinced some buyers to come off the sidelines, but with rates ticking up again in recent weeks, buyers are once again pulling back, causing sales activity to remain down heading into spring. *Source: FastStats by ShowingTime with all data from Great Plains Regional MLS.